: (1) While a person is in the position of a director, if he acquires rights in shares or debentures of that company or subsidiary of that company or the main company or other subsidiary company of the main company, he shall give the following information to the company:-
(a) exercise of his rights,
(b) Details of the number of shares of each class and the amount of debentures of each class that he has the right or interest in the shares or debentures of the related company or other company during his tenure as director.
(2) If the following situation arises, the director of the company must inform the company of which he is the director in writing within fifteen days of his knowledge of such situation:-
(a) If for any reason he acquires rights in the shares or debentures of the company of which he is a director or the subsidiary or main company or other subsidiary company of the main company or if his right expires,
(b) If he enters into any agreement for the sale of shares or debentures under clause (a) in his name,
(c) If the company of which he is a director transfers the right granted to someone else to purchase shares or debentures of such company,
(d) If the subsidiary or main company of the company of which he is the director or the subsidiary company of such company or other subsidiary company of the main company gives the right to purchase the shares or debentures of such company,
(e) If he transfers the right to purchase shares or debentures of the company as per Clause (d) to someone else.
(3) When sending information to the company according to sub-section (2), the number of shares or debentures, their amount and class must also be clearly disclosed.
(4) In order to record the information received under sub-sections (2) and (3), the company shall establish a separate register book.
(5) The provision written in this section shall be applicable to the close relatives of the director as well as the director.